Compliance with international labor and environmental standards has emerged as a critical factor for Pakistan’s economic growth and its continued access to the European Union’s Generalized Scheme of Preferences Plus (GSP+). This was emphasized at the closing event of the International Labour and Environmental Standards Application in Pakistan’s Small and Medium Enterprises (ILES) Project.
Funded by the European Union and implemented by the International Labour Organization (ILO) and the World Wide Fund for Nature – Pakistan (WWF), the ILES project has been a driving force in ensuring that small and medium-sized enterprises (SMEs) in Pakistan align with global standards. The initiative has positively impacted over 80,000 workers across various sectors.
“The ILES project enhanced the institutions that foster enforcement and promotion of labor rights. The progress we have seen is only a step in a path that will become steeper with new international regulations coming into force in the future,” said Geir Tonstol, ILO’s Country Director for Pakistan, highlighting the significance of the project in strengthening institutions that promote labor rights. He added that the ILO stands ready to support actions that promote compliance with international labor standards, as these actions are needed for the sake of economic progress, enterprise development, and worker rights.”
The ILES project has also supported the ratification of ILO conventions and the alignment of national regulations with international commitments, resulting in better working conditions and new business opportunities for enterprises. At the provincial level, the project has bolstered institutional capacity to enforce labor rights, particularly through enhanced workplace inspection systems following Pakistan’s post-devolution reforms.
By working closely with over 150 enterprises and trade associations, particularly in the textile, garment, and leather sectors, the ILES project has helped these industries access foreign markets while boosting their environmental performance, productivity, competitiveness, and workplace relations.
Jeroen Willems, Head of Cooperation at the EU Delegation to Pakistan, praised the program’s contributions. “The ILES program has played a pivotal role in enhancing compliance with GSP+ labor and environmental standards, thereby increasing the country’s competitiveness. Some of the key achievements include assisting provincial governments in drafting critical legislative documents, enhancing capacity for policy implementation, legal compliance, and international commitments, and strengthening monitoring and reporting mechanisms,” he said.
Chaudhry Salik Hussain, Federal Minister of Ministry of Overseas Pakistanis and Human Resource Development, underscored the importance of the project in advancing Pakistan’s compliance with international environmental and labor standards. He remarked, “The ILES project accelerated our capacity to advance the compliance with environmental and labor standards, a key priority under our international obligations, SDG commitment, and trade agreements with the European Union.” Hussain added that the Ministry remains committed to sustaining this progress by promoting the ratification, reporting, and implementation of international labor standards.
Hammad Naqi Khan, Director General of WWF-Pakistan, spoke about the challenges and solutions in sectors requiring high water and energy use. “We have worked tirelessly to drive economic growth while improving environmental compliance across Pakistan. The textile and leather sectors are major exporters but require significant amounts of water and energy for production. To address these challenges, we have introduced innovative ideas, capacity-building initiatives, Smart Environmental Management Plans (SEMPs), and cleaner production technologies,” he said.
Romina Khurshid Alam, Coordinator to the Prime Minister on Climate Change and Environmental Coordination, emphasized the national significance of the ILES project, especially in key export industries. “The ILES project has contributed significantly to our national progress by strengthening compliance with international labor and environmental standards. Its focus on key export industries—textiles, ready-made garments, and leather—has enhanced our competitiveness and helped sustain our privileged GSP+ access to European markets.”
The event also provided a platform for government, employer, and worker representatives to discuss the next steps, particularly in light of the upcoming GSP+ status review and new legislation aimed at improving environmental, human, and labor rights standards across supply chains.